EUROPE was teetering on a financial cliff edge last night after the tightest of polls in the Greek elections.

The pro-bailout New Democracy party offered a glimmer of hope for the future of the single currency by narrowly topping the ballot.

But its leaders must now try to avert a financial meltdown in the Eurozone by patching together a coalition with their bitter rivals.

New Democracy boss Antonis Samaras last night insisted he would honour commitments to continue austerity measures in return for bailout cash to his bankrupt nation.

Declaring the result a victory for Europe, the new prime minister said: “I am relieved. As soon as possible, we will form a government.

“The Greek people voted today to stay on the European course and remain in the eurozone. There will be no more adventures.

“It is such a significant moment for Greece and the rest of Europe.”

The conservative New Democracy party won 29.5 per cent of the vote and, under the Greek PR system, gets a 50 seat bonus – giving them 128 MPs. But the result leaves them 23 seats short of a majority.

Anti-austerity Syriza, the radical left wing party, won 27.1 per cent of the vote and leader Alexis Tsipras last night conceded the election.

Former governing party Pasok were almost wiped out in yesterday’s poll and got just 12.25 per cent or 33 seats.

They are now likely to use their seats to act as king-makers.

But there were suggestions last night Pasok would refuse to join a government without Syriza.

Syriza, meanwhile, could refuse to take part in a government of national unity with New Democracy and Pasok, raising the possibility of more elections in six weeks.

Tsipras warned of tough times ahead and said: “Syriza is the basic party for anti-bailout.

“I called Samaras and congratulated him. He has the possibility of forming a government on the basis of his mandate and policies. We will be present in developments in position as opposition.

“We won’t sacrifice our position.”

The result exposed a deeply divided society and could lead to new protests against a coalition governing with significantly less than 50 per cent of the electorate’s support.

Greece’s lenders said a new government must accept the conditions of the bailout – on top of a 110billion euro package in 2010 – or funds will be cut off, driving Athens into bankruptcy.

And the next week could see jitters in the global money markets as the horse trading begins to form a coalition government.

Daragh Maher, of HSBC in London, warned last night: “What stands out is how close Syriza came, so we expect some robust opposition to the austerity measures.

“Markets will be concerned about how narrow the margin of victory was for New Democracy and any gains in the euro and other markets will be limited.”

European leaders were last night clinging to the hope that New Democracy would be able to form a government backing Germany’s austerity demands in return for more cash.

A statement on behalf of the 17 single currency countries also insisted continued fiscal and structural reforms were the best way for Greece to return to prosperity.

It said: “The Eurogroup takes note of the provisional results of the Greek elections, which should allow for the formation of a government that will carry the support of the electorate to bring the country back on a path of sustainable growth.

“The Eurogroup reiterates its commitment to assist Greece.”

Joseph Daul, leader of the European Parliament’s centre-right European People’s Party, added: “With their wise decision, the Greek people have decided that their future lies inside the eurozone. The positive vote, the efforts and sacrifices of the people, combined with European solidarity, will soon bring the country back on the path of economic recovery and growth.”

With the country on its knees, Greece did have some reason to celebrate ahead of the poll.

The national side enjoyed a shock 1-0 victory against Russia in the Euros on Saturday, meaning they qualify for the quarter final of the tournament.

Prime Minister David Cameron will today warn that the world economy is now facing a perpetual slump unless bold action is taken to rescue the single currency.

In a speech to business leaders at the G20 summit in Los Cabos, Mexico, he will round on eurozone leaders for not doing enough to deal with the crisis.

And in yet another lecture to German chancellor Angela Merkel and French president Francois Hollande, Cameron will call for “courage, resolve and political commitment” to sort out the eurozone crisis.

He will tell the G20: “There are a set of things that eurozone countries need to do and it’s up to eurozone countries whether they are prepared to make the sacrifices these entail.”

Cameron will suggest urgent action is needed by Germany and other countries at the core of the eurozone to help poorer countries.

This includes getting the European Central Bank and other major world lenders to do more. The PM will warn that the stakes for the world economy are “incredibly high”.

Cameron’s speech will not be welcome by some European leaders when Britain’s deficit remains high. And it is one of the few countries in the European Union to have suffered a double-dip recession.

He is taking a delegation of business leaders to Mexico, including Jimmy Choo founder Tamara Mellon, representatives from Rolls-Royce, Virgin Atlantic, HSBC and Diageo.

Cameron will also bang the drum for the London Olympics’ Global Investment Conference, which hopes to bring more than £1billion in new trade and investment for Britain.

A chaotic Greek exit from the single currency could fuel a run on the banks. The same could happen to banks in countries which have lent heavily to Athens, triggering a domino effect which could spread to banks in non-eurozone countries including the UK.

Boarded up cash machines a worrying sign of the times

By Tom Parry in Athens

CLINGING to the back of a waiter’s moped in downtown Athens, I was more concerned for my own safety than Greece’s economic collapse.

But there was no doubt my ­precarious position without a helmet was down to the debt crisis.

Minutes earlier, I had handed over my credit card at the end of a meal.

“No cards,” the taverna owner said. “We need to have cash.”

He directed me to a local cash machine but it was out of action. Back at the restaurant, I held up my hands in despair. The waiter then offered to drive me to a cash machine. It became an hour-long quest. ATMs had been emptied or boarded up. At last we found one on the other side of the capital.

With EU finance chiefs fearing mass withdrawals if Greece leaves the euro, this scenario will become more common. In the 10 days after the May 6 poll, savers were reported to have pulled £3billion out of banks.